A hub carrier operates one hub linking multiple non-hub cities. It merges with a low cost carrier whose nonstop service competes with its one-stop service. The merged airline's profit is maximized by withdrawing the competing one-stop (nonstop) service when the hub carrier's operating cost and...

In the presence of price distortions, cost-benefit analysis must include changes in the deadweight loss in addition to the direct benefits and costs to transportation users and nonusers. Advances in new economic geography (NEG) have highlighted the importance of price distortions associated with...

The share of revenues from airport concession services among airports worldwide has reached an average level of roughly 50% today. Since concessions may exert downward pressure on the private aeronautical charge, the question is whether price regulation of private airports has become obsolete....

During 1952–54, Martin Beckmann, and his colleagues, formulated a nonlinear programming problem corresponding to behavioral assumptions from the viewpoint of an individual traveler concerning travel demand and cost-minimizing route choice over a congested road network. Their formulation was...

We study optimal cordon tolling in a general equilibrium model of the Chicago MSA. Adjustments in travel, housing and labor markets blunt the toll's impact. Residence relocations drive job relocations and vice versa. The outflow of jobs and residences out of the cordoned area is checked by...

This paper extends recent research on the fare impacts of low-cost carriers, incorporating its adjacent-airport approach to offer a comprehensive picture of the competitive effects of both legacy carriers and low-cost carriers. The analysis measures the impact of in-market (i.e., airport-pair)...

Living downtown can be advantageous because it enables convenient access to a variety of shopping and leisure activities, but a major disadvantage is the difficulty of finding a parking spot. We formally model the trade-off between privileged parking for residents and economic vitality in terms...